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18 July 2008

Oil Below $130, US stocks end higher

US stocks end higher on oil price fall

Index Value: 11,446.66
Change: + 207.38 (1.85%)
Prev Close: 11,239.28
Day's Range: 11209.56 - 11446.66
52wk Range: 10,732.00 - 14,280.00

Wall Street shot higher on Thursday, extending its rally into a second session as tumbling energy prices bolstered an already upbeat mood that followed stronger-than-expected quarterly reports from big names like JPMorgan Chase and United Technologies. The Dow Jones industrial average rose more than 200 points, bringing their two-day advance to more than 480. Investors got a double dose of good news after weeks of angst about the economy. Light, sweet crude fell $5.31 to settle at $129.29 a barrel; oil has dropped more than $15 in just the past three sessions. And early on Thursday, three components of the Dow industrials, JPMorgan Chase & Co, United Technologies Corp and Coca-Cola Co, issued comments that generally indicated that their businesses are holding up despite sometimes difficult economic conditions. The reports let investors put aside some of their worst fears about the economy. Still, Wall Street has had some up periods in the past few months as optimism grew, only to fall back into a downturn as worries about the financial sector and the economy have welled back up.

"The sentiment has just been so negative that even a whiff of positive news is driving the markets," said Kevin Dorwin, principal at wealth management firm Bingham, Osborn & Scarborough in San Francisco. "Oil the key factor right now because inflation has been on the top of investors' minds and a reduction in the price of oil signals that perhaps inflation will not get out of hand. That's very positive for both the stock and bond markets." Beyond oil, natural gas prices also fell sharply Thursday after the Energy Department said domestic stockpiles rose last week, signaling a drop in demand. While levels remain below those of recent years natural gas fell 86.1 cents to settle at $10.537 per 1,000 cubic feet. A sustained drop in energy costs would be welcome news for nearly all parts of the economy. Consumers have been hard-pressed by higher fuel and food costs. Wall Street is worried they will pare their spending on discretionary items to make room in their budgets for the higher-priced necessities.

A pullback could be troublesome as consumer spending accounts for more than two-thirds of US economic activity. But the declines in energy and profit reports from marquee names left investors in an acquisitive mood again Thursday. The Dow rose 207.38, or 1.85 percent, to 11,446.66. The Dow on Wednesday surged 276 points after oil fell and Wells Fargo & Co. posted better-than-expected earnings. The 4.4 percent advance over two days was the Dow's best two-day percentage gain since October 2002 and the point increase gave the blue chips their best back-to-back point gain since late November last year. Broader stock indicators also rose Thursday. The Standard & Poor's 500 index advanced 14.96, or 1.20 percent, to 1,260.32, and the Nasdaq composite index rose 27.45, or 1.20 percent, to 2,312.30. Advancing issues outpaced decliners by nearly 3 to 1 on the New York Stock Exchange, where volume came to 1.96 billion shares compared with 1.73 billion shares traded Wednesday. Bond prices showed steep declines as investors turned away from the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 4.01 percent from 3.94 percent late on Wednesday. The dollar was mixed against other major currencies, while gold prices rose. Continued...Next >>
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Dow Logs Best 2-Day Gain Since 2002
Oil Prices Settle Below $130 in Volatile Trading
Microsoft's $4.3 Billion Profit Falls Short; Shares Slide
Google Earnings Miss Expectations; Shares Drop
IBM Profit Rises 22%, Topping Expectations

Source: CNBC, ET

17 July 2008

Results: Biocon, Polaris, ICIIndia Etc

Sensex 556 pts up, Inflation Stays at 11.91

Inflation shoots up to 11.91%

The annual inflation rate climbed to 11.91 per cent for the first time in more than 13 years in early July, driven by higher costs of commodities and strong demand in the economy. This is a quarter per cent jump week on week. The fuel, power and light were up 0.9 per cent while primary articles were down 0.1 per cent. Fruit and vegetable prices were down 1 per cent with other food articles seeing a 0.2 per cent dip. It would be the 22nd consecutive week that the inflation rate has been above 5.5 per cent, the central bank's target for the end of the fiscal year in March 2009.

According to a research report by Standard & Poor's, world CPI inflation - which was 2.4 per cent in 2002 - rose to 3.3 per cent in 2007 and is now projected to hover around 5.2 per cent in 2008. Region-wise, CPI inflation is projected to remain 3.4 per cent this year in European Union and 3.2 per cent in Eurozone. In 2002, the inflation figures were 2.1 per cent for both the regions. Likewise, CPI inflation is projected to remain this year at 4.8 and 3.2 per cent in the US and the UK, respectively, and 8.8 per cent in the emerging markets. The highest inflation is projected at 15.3 per cent in the CIS counties and at 12.8 per cent in the Middle East & North Africa.
More :http://economictimes.indiatimes.com/Inflation_shoots_up_to_1191/articleshow/3246282.cms

Invest during inflation? Tips for investments World inflation
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Equities end higher on easing in crude oil

Bolstered by positive global cues and receding crude oil prices, equities in India snapped their week-long losing streak to end sharply higher om Thursday. Investors covered short positions and also made fresh purchase at lower levels.

National Stock Exchange’s Nifty settled 130.5 points or 3.42 per cent higher at 3947.20. The index touched a high of 3968.75 and a low of 3823.15 intra day. Bombay Stock Exchange’s Sensex ended up 536.05 points or 4.26 per cent at 13,111.85 after swinging in a range of 13,150.35 and 12,843.79.

The BSE Mid-cap Index ended up 1.39 per cent at 5,155.34 and the BSE Small-cap Index was 0.99 per cent higher at 6,387.12. “Market was in an oversold territory and we witnessed a technical bounce-back. Another factor that lifted the positive sentiment was cooling of crude oil prices,” said Arpit Agrawal, head of research, Arihant Capital Markets. Traders covered positions in over-beaten interest-sensitive sectors like banking and real estate. Buying was also seen in capital goods stocks. Steel counters sulked on fear of government initiative to cap prices. Market discounted inflation, which was expected to be above 12 per cent. “Market will remain volatile till vote of confidence is passed.

Otherwise, fundamentally things have not changed much,” Agrawal added. Biggest Sensex gainers were HDFC (9.78%), Maruti Suzuki (9.46%), Jaiprakash Associates (9.19%), DLF (8.44%), Larsen & Toubro (7.49%) and State Bank of India (7.75%). Losers comprised Ranbaxy Laboratories (-3.93%) and Tata Steel (-2.92%). Market breadth remained positive through the day. On BSE, 1,536 advances outnumbered 1,081 declines. In Europe, stocks were buoyant cheering crude’s fall. The FTSE 100 was up 2.34 per cent, DAX 30 rose 2.33 per cent and CAC 40 added 2.76 per cent.

Oil prices fell on concerns slowing US economic growth would hurt crude demand. Light sweet crude forAugust delivery, dipped 42 cents to $134.18 per barrel. Friday, market will cheer a marginal rise in domestic inflation to 11.91 per cent in the week to July 5 from 11.89 per cent in the previous week. Finance Ministry’s statement that inflation has stabilized will further lift investor sentiment.
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Other top news:
Biocon among world's top 20 biotechnology company
Unitech gets Rs 740 cr from Lehman
GSPC to invest $ 1 bn in KG basin
Oil slumps $6 to $134 on surprise rise in US inventories
Now, Shah Rukh, Aamir, Abhishek make it to Forbes list
Aviva plans foray into asset management business

Source: ET

16 July 2008

TCS Q1 net up 5 per cent, lags forecast

Country's top software exporter, Tata Consultancy Services (TCS), narrowly missed forecasts with a 5 per cent rise in quarterly profit, as a global credit turmoil crimped outsourcing deals from its big financial clients.

Tata Consultancy, which provides services such as consulting, system integration and back-office outsourcing, said on Wednesday net profit rose to Rs 1,244 crore ($289 million) in its first quarter ended June from Rs 1,186 crore reported a year ago under US accounting rules.

A poll had forecast a net profit of Rs 1,251 crore for Tata Consultancy, whose clients include General Electric, Lloyds TSB Group, French insurer AXA SA and Qantas Airways. Ahead of the result, shares in Tata Consultancy, which the market values at about $17 billion, ended nearly 3 per cent down at Rs 727.35 in BSE that fell 0.79 per cent.

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Other Qtr Results:

Container Corporation Of India net profit rises 7.88% in the June 2008 quarterSales rise 5.71% to Rs 822.84 crore

Mindtree reports net loss of Rs 12.96 crore in the June 2008 quarter

ABC Bearings net profit rises 33.01% in the June 2008 quarter

Chambal Fertilisers & Chemicals net profit declines 61.43% in the June 2008 quarter

State Bank of Mysore net profit declines 80.34% in the June 2008 quarter

Mysore Paper Mills net profit rises 9284.62% in the June 2008 quarter

SKF India net profit declines 10.04% in the June 2008 quarter

Timken India net profit rises 44.16% in the June 2008 quarter

Housing Development Finance Corporation net profit rises 25.56% in the June 2008 quarter

Power Finance Corporation net profit declines 4.00% in the June 2008 quarter

Tata Teleservices (Maharashtra) reports net loss of Rs 34.72 crore in the June 2008 quarter

S.Kumars Nationwide net profit declines 37.04% in the June 2008 quarter

Excel Crop Care net profit rises 105.14% in the June 2008 quarter

Bafna Spinning Mills & Exports net profit rises 16.67% in the June 2008 quarter

Sunflag Iron & Steel Company net profit rises 94.34% in the June 2008 quarter

Modern India net profit rises 23.01% in the June 2008 quarter

Tata Metaliks net profit rises 31.71% in the June 2008 quarter

Country Club India net profit rises 46.21% in the June 2008 quarter

Source: ET, Capitalmarket

Trillion Dollar Economies: World Bank Report

Rapid growth in the four quarters of calendar 2007 ensured India became a trillion-dollar economy in nominal terms at the end of last calendar , according to a World Bank report. According to the World Development Indicators released on July 1, India was a $1.17 trillion economy at the end of calendar 2007. The US retained its pole position as the largest economy with GDP of $13.8 trillion. Following are names of the largest countries in terms of GDP.

For more @ http://economictimes.indiatimes.com/quickiearticleshow/3234829.cms

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Other Top stories:
Sensex, Nifty end at new 15-month lows
'Indian Clinical trials biz will touch $546 b FY 11'
Tata Teleservices Q1 net loss at Rs 34.715 cr
World's best places to invest in realty

Source: ET, Sify

New 15 month Low for Sensex, Nifty: ET

Market slumps to 15-month low as inflation worries persist

It was a classic example of a 'dead cat bounce' that the market witnessed on Wednesday as benchmarks collapsed to a 15-month low after a promising start. Even as global equities tumbled overnight after Fed Chairman Ben Bernanke spelled out serious economic risks facing the US, crude oil's steep fall below $139 per barrel gave a ray of hope for Indian markets, especially after being severely beaten down in the last few sessions.

However, the relief rally was short-lived as political uncertainty ahead of next week's parliamentary trust vote and worsening global credit crisis took precedence. Also, fears of inflation topping 12 per cent weighed on sentiment. Starting this week, inflation data will be released every Thursday at 5 pm instead of midday on Friday. Interest rate sensitive sectors like realty, automobiles and banks were punished the most as investors expect interest rates to inch up further if inflation continued to spike. The first sign of weakness was seen in the mid- and small-cap space, but as the day progressed, it seeped into frontline stocks as well, crippling the Sensex and Nifty.

Bombay Stock Exchange's Sensex closed at 12,575.80, down 100.39 points or 0.79 per cent after rising to an intra-day high of 12,935.25. The index fell to a new 15-month low of 12,514.02 during the day. National Stock Exchange's Nifty ended at 3816.70, down 44.40 points or 1.15 per cent. It saw a low of 3790.20 and high of 3920.05 intraday.

“The market lacks confidence as macro-economic factors and political uncertainties weigh on sentiment. I would advise investors to remain short till the market shows a convincing upmove backed by heavy volumes,” said an analyst with a local brokerage. Second line stocks were the worst affected. BSE Midcap Index declined 1.14 per cent to 5,104.66 and BSE Smallcap Index ended at 6,340.48, down 1.41 per cent.

But the standout performer was Ranbaxy Laboratories. Shortly before the market opened, the pharmaceutical major's CEO Malvinder Singh clarified on the Daiichi Sankyo stake buy and USFDA allegations over adulteration. He said there was a lot of speculation in the market due to lack of clarity on the issues and that the stock price of Ranbaxy doesn't reflect the potential of the company. He tried to put to rest rumours that Daiichi Sankyo was seeking to opt out of the acquisition.

Singh said that Daiichi Sankyo was fully aware of the USFDA issue before the deal took place. He added that the Lipitor settlement was independent of Daiichi Sankyo and there will be no change in the settlement with Pfizer. The stock, which had tanked 23 per cent in the previous two sessions, rebounded 15.02 per cent, making it the biggest gainer on the Sensex.

Other gainers were Bharti Airtel (2.87%), ONGC (2.52%), Hindustan Unilever (1.77%), Ambuja Cement (1.37%) and ITC (1.25%). DLF (down 7.73%), Jaiprakash Associates (6.09%), Mahindra & Mahindra (5.42%), HDFC (4.43%), SBI (3.32), Tata Steel (3.29%) and Tata Consultancy Services (2.98%) were the biggest losers in the Sensex. Market breadth remained weak through the day. On BSE, there were 1,803 declines and 810 advances, while on NSE there were 300 gainers and 948 losers.

Meanwhile, European stocks also declined after UK unemployment jumped the most in June since the last recession in 1992 as the economic slowdown forced companies to cut jobs and stop hiring. Claims for jobless benefits climbed for a fifth month, increasing 15,500 from May, data showed on Wednesday. The FTSE 100 declined 1.69 per cent, DAX 30 lost 0.69 per cent and CAC 40 slumped 1.02 per cent.
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BGR Energy bags Rs 4,900 cr order, stock up 9%
Chambal Fertilisers Q1 falls to Rs 23.80 cr
Rel Retail to open 50-60 'i stores'
Inflation data to be out on Thursday
Ambani brothers' spat highlights India's coalition politics

Parsvnath to invest Rs 400 crore in Nanocity project
Goldman Sachs retains 'buy' on Sesa Goa

Source: ET

US STOCKS-Dow closes below 11,000 as bank fears mount

US STOCKS-Dow closes below 11,000 as bank fears mount

* Dow closes below 11,000 for first time in two years
* S&P 500 slides over 1 pct, Nasdaq nearly flat
* Oil plunges over $6 a barrel, hurting energy shares
* Fannie, Freddie shares fall on worries over rescue plan
* Financial shares end lower in choppy trading (Adds Intel, Sun Micro after-hours rise)
By Walter Brandimarte

NEW YORK, July 15 (Reuters) - The Dow industrials closed below 11,000 for the first time in two years on Tuesday as doubts about the U.S. plan to rescue mortgage finance companies Freddie Mac and Fannie Mae hurt financial stocks and tumbling oil prices hurt energy shares.
Freddie and Fannie shares plunged over 25 percent on fears that a government plan to stabilize the companies will dilute the value of their shares. U.S. Treasury Secretary Henry Paulson said the plan was designed to be a backstop.

The whole banking sector finished lower, with the KBW banking index .BKX sliding 3.08 percent in an extremely volatile session, as investors feared the ongoing credit crisis could spur more bank failures after regulators took over IndyMac last week. Federal Reserve Chairman Ben Bernanke said the banking system is well capitalized, but also said that financial markets remain under "considerable stress."

"The weakness was concentrated in financials and it seemed like, despite the testimony from Bernanke and Paulson, skepticism remains related to all the credit issues," said Alan Gayle, senior investment strategist at Trusco Capital Management in Atlanta.

The Nasdaq edged up as investors bet Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) would ease concerns about slower growth at its Windows business when it reports earnings later this week. Shares of the software maker jumped 4.0 percent to $26.15.

The technology sector may get another boost on Wednesday after Intel (INTC.O: Quote, Profile, Research, Stock Buzz), the world's biggest chip maker, reported stronger-than-expected results after the market close and Sun Microsystems (JAVA.O: Quote, Profile, Research, Stock Buzz) posted preliminary results that pleased investors. Shares of Intel gained as much as 2.4 percent in after-hours trade, while shares of Sun Micro rose as much as 12.6 percent.

The Dow Jones industrial average .DJI dropped 92.65 points, or 0.84 percent, at 10,962.54, and the Standard & Poor's 500 Index .SPX fell 13.39 points, or 1.09 percent, at 1,214.91. The Nasdaq Composite Index .IXIC was up 2.84 points, or 0.13 percent, at 2,215.71.
Shares of Freddie Mac slumped 26 percent to $5.26 while Fannie Mae shares lost 27.3 percent at $7.07.

Despite the slide in the bank sector, shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) surged 6.6 percent to $13.22 after a report that the investment bank was considering ways to go private. [ID:nN15304704]

Among energy shares, Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) slid 3.8 percent to $82.19 as the price of crude oil plunged. The S&P energy index shed 4.19 percent.
Trading volume was moderate on the New York Stock Exchange, with about 1.85 billion shares changing hands, below last year's estimated daily average of roughly 1.90 billion, while on Nasdaq, about 2.7 billion shares traded, above last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones on the NYSE by 3 to 1, whole on the Nasdaq, about 3 stocks fell for every two that rose. (Additional reporting by Jennifer Ablan; Editing by Leslie Adler)
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Oil steady under $139, eyes on U.S. oil demand
Bank shares sink to 1996 levels on loss fears
Bernanke: Markets under stress, outlook uncertain

Source: Reuters.com

15 July 2008

Sensex slides 654 pts as stock prices plummet, 15month low

Sensex slides 654 pts as stock prices plummet

Equities, led by bank stocks, opened on a negative note on the major Indian bourses this morning on weak global cues and drifted lower and lower as the session progressed as selling continued unabated right till the end.

Stockometer Top gainers Worst losers

Huge credit losses suffered by a few US banks, high oil prices, political uncertainties, spiralling inflation and declining growth all contributed in good measure to the market's sharp slide today. So bearish was the sentiment that stocks found support hard to come by even at sharply lower levels.

Tips to book profits in a falling market! Click here

The Sensex, which had hit a historic high of 21,206.77 in intra-day trades on in early January this year, has tanked by around 8,500 points over a short span of six months.

The Sensex, which crashed to 12,605, its lowest since April 4, 2007, when it had touched a low of 12,691.24, ended the day with a massive loss of 654.32 points or 4.91% at 12,676.19. The Nifty, which plunged to 3835.50 in intra-day trades today, settled at 3861.10, netting a huge loss of 178.60 points or 4.42%.

Besides stocks from the banking sector, several stocks from capital goods, metal, realty, PSU, FMCG, oil and auto sectors too declined sharply and finished with big losses today. Mirroring the sell-off in bank stocks, the Bankex tumbled by 7.75%. BSE Realty (down 5.44%), CG (down 5.25%), Metal (down 5.21%), Power (down 4.91%), PSU (down 4.37%) and HC (down 4.18%) declined sharply. The Teck, Consumer Durables, Oil & Gas and FMCG indices went down by 3% - 4% and BSE Auto eased by 2.5%.

IT stocks, which bounced back in early trade after recent losses, lost their way around mid afternoon and posted sharp losses. Reflecting the losses posted by key stocks in that space, the BSE IT ended lower by 2.34%.

Due to heavy selling at side counters, the Midcap and Smallcap indices plunged by around 3.15% today. The market breadth remained weak right through the session. When trade ended, out of a total of 2696 stocks that were seen in action on BSE, as many as 2093 stocks were down in the red. 543 stocks posted gains and 60 stocks ended flat.

All the components of the benchmark indices Sensex and Nifty finished in the negative territory today. Infosys Technologies (down 0.77%) suffered the least damage. Satyam Computer Services, which stayed in the positive territory for a long time today, closed with a loss of 2.7%. Tata Consultancy Services lost 2.5% while Wipro dropped down by around 6.5%.
Ranbaxy Laboratories (down 14%) has another disastrous outing. Banking sector heavyweights HDFC Bank (down 11.26%), ICICI Bank (down 8.7%) and State Bank of India (down 6.35%) nosedived on sustained selling pressure.

Metal stocks Hindalco and Tata Steel lost 8.3% and 5.4% respectively. Reliance Industries (down 3.4%), Reliance Infrastructure (down 6.1%) and Reliance Communications (down 7.2%) posted sharp losses.

BHEL, HDFC, Jaiprakash Associates and DLF lost 6% - 7%. Mahindra & Mahindra, Larsen & Toubro, ITC, Ambuja Cements, Bharti Airtel, Cipla, Hindustan Unilever, Maruti Suzuki and ONGC lost 3% - 5%. NTPC closed with a loss of 2.75%. ACC, Grasim Industries and Tata Motors lost 1.25% - 1.75%.

Idea Cellular ended nearly 8% down. Unitech, Siemens, Sterlite Industries, HCL Technologies, ABB, Suzlon Energy, SAIL, Power Grid Corporation, Nalco and Reliance Petroleum lost 3% - 6.5%. Punjab National Bank, GAIL India, Tata Power, BPCL, Zee Entertainment, Sun Pharmaceuticals, Tata Communications, Cairn India, Dr. Reddy's Laboratories and Hero Honda also ended with sharp losses.

IVRCL Infrastructure, Tata Chemicals, Chambal Fertilizers, Century Textiles, IDFC, India Infoline, Financial Technologies, Yes Bank, IndusInd Bank, JSW Steel, Union Bank of India, Sun TV Network, Essar Shipping, Shree Precoated Steels, Alstom Projects, Mundra Port, Aditya Birla Nuvo, Adani Enterprises, Moser Baer, CMC, Lok Housing, Champagne Industries, Arshya International, Sterlite Technologies, Aptech, Advanta and Assam Company were among the major losers today.

IFCI, Tech Mahindra, ABG Shipyard, Bhushan Steel and Aban Offshore finished with marginal gains. BF Utilites, Walchandnagar Industries, Prithvi Infosystems, Zuari Industries, Allcargo Global, SKF India, SpiceJet, Cranes Software, ING Vysya Bank, Kesoram Industries, Marg, Ahluwalia and Consolidated Construction Consortium moved up sharply on selective buying support.
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